Tax year end support and resources

Since VCTs are listed companies, shares can be purchased on the secondary market through an investment platform or stockbroker. Keep in mind that shares bought on the secondary market don’t qualify for the upfront 30% income tax relief. This relief is only available on newly issued shares, so most investors prefer to buy new shares in a VCT fundraise.

You have the option to apply for shares via a financial adviser (recommended), directly with Octopus, or through an intermediary like Wealth Club. Our VCTs are also available on some investment platforms like Hargreaves Lansdown and Crowdcube.

We always recommend that investors seek financial advice before investing.

VCT dividends are exempt from tax, meaning investors do not need to declare them on their tax returns.

No, this is not possible.

If you pass away within five years of holding your VCT investment, your estate is not required to repay any upfront income tax relief already claimed. Additionally, if the value of the VCT shares at the time of death is less than £200,000, the dividends paid by your VCT will remain tax free. Furthermore, there will be no capital gains tax on the growth of the investment when your beneficiaries decide to sell it.

Inheritance tax (IHT) generally needs to be paid by the end of the sixth month following the person’s death. If the payment is delayed beyond this period, HMRC may apply interest to the outstanding amount.

Certain assets can be exempt from IHT, including:

• Gifts to a spouse or civil partner
• Gifts to charities or political parties
• Some investments qualifying for Business Relief (e.g., shares in certain unlisted companies)*
• Qualifying agricultural property*

These exemptions and reliefs can help lower the taxable value of an estate.

* From 6 April 2026, 100% IHT relief will apply to the first £1 million of combined agricultural and unquoted Business Relief qualifying property (e.g. sole traders, partnerships, unquoted companies). Amounts exceeding £1 million will attract 50% IHT relief. Business Relief qualifying companies listed on the Alternative Investment Market (AIM) will attract 50% IHT relief regardless of the investment amount.

To calculate the total value of an estate in the UK, at a high level, you need to sum all assets, including but not limited to:

• Property and land
• Cash, savings, and investments
• Pensions (if not yet drawn, effective from 6 April 2027)
• Life insurance policies (if not written into trust)
• Personal belongings, such as jewellery and vehicles
• Gifts and transfers into trusts made in the last 7 years of death

Then, subtract any debts, such as mortgages or loans, and funeral expenses. The resulting figure is the net estate value. From this, deduct any available NRB and RNRB allowances before applying the 40% IHT.